Income when on ESA - homeowner?

MEsteve

Hi There

I receive ESA and found out that my grandmother has put her house in all of my cousins names including me, which means she has to pay us a small rent each of £120. Obviously I need to declare this to ESA, I'm just a bit worried that I will now be regarded as a home-owner?...will that mean I'm no longer eligable for ESA or housing benefit? I live with ME which is why having ESA is important to my survival...

HappyMJ

MEsteve wrote: »

Hi There

I receive ESA and found out that my grandmother has put her house in all of my cousins names including me, which means she has to pay us a small rent each of £120. Obviously I need to declare this to ESA, I'm just a bit worried that I will now be regarded as a home-owner?...will that mean I'm no longer eligable for ESA or housing benefit? I live with ME which is why having ESA is important to my survival...

How did your grandmother put her house in your name without your permission?

Yes if the property is in your name you lose all of your income based benefits including ESA and housing benefit. Also council tax will now be payable in full, you also lose your free prescriptions and several other benefits.

Topcat1982

HappyMJ wrote: »

Yes if the property is in your name you lose all of your income based benefits including ESA and housing benefit. Also council tax will now be payable in full, you also lose your free prescriptions and several other benefits.

Depends how many cousins there are to share the house.

Mojisola

HappyMJ wrote: »

How did your grandmother put her house in your name without your permission?

OP - ask your grandmother just how this was done. Doesn't sound right.

MEsteve

there are 10 cousins so I guess its 1/10th

Mojisola

MEsteve wrote: »

I receive ESA and found out that my grandmother has put her house in all of my cousins names including me, which means she has to pay us a small rent each of £120.

MEsteve wrote: »

there are 10 cousins so I guess its 1/10th

How much rent does each person get? She isn't paying £120 x 10 every month, is she?

I don't think owning 1/10th of a house will affect your benefits because you can't make use of the capital. Declare any rent you get and take it from there.

As all of you are now landlords, you will have comply with all the landlord legislation - a bit of a nightmare with ten of you involved.

Has your grandmother done this to avoid inheritance tax and/or paying for residential care?

MEsteve

well part of the problem is that I have not spoken to her for two years due to her very unsupportive stance on the illness that has ruined the last 10yrs...

I am now guessing this is some sort of trust...I don't think I actually own the house yet...she has to live in it for 7 years...then it can be left to us...

xylophone

has your Grandmother passed away?

She'd hardly be paying rent from the grave?

my grandmother has put her house in all of my cousins names including me, which means she has to pay us a small rent each of £120.

It may be that the grandmother has gifted her house to her grandchildren in the hope of a PET but because she wishes to remain living in it, has to pay them a market rent?

http://www.saga.co.uk/magazine/money/personal-finance/giving/what-you-need-to-know-about-signing-property-over-to-your-children

Mojisola

MEsteve wrote: »

I am now guessing this is some sort of trust...I don't think I actually own the house yet...she has to live in it for 7 years...then it can be left to us...

Either you or she is getting mixed up.

If she gives away her home to other people and then pays them rent, after seven years the value of her home won't be counted as part of her estate for inheritance tax.

If she needs to go into care, its value could still be included in the financial assessment but, if she has enough money to take measures to avoid inheritance tax, paying for her own care shouldn't be a problem.

I know how difficult it can be to get an ME brain round complicated issues but you need to find out what she's done. If you do actually own part of a house and aren't declaring it, you could be accused of fraud.

MEsteve

xylophone wrote: »

She'd hardly be paying rent from the grave?



It may be that the grandmother has gifted her house to her grandchildren in the hope of a PET but because she wishes to remain living in it, has to pay them a market rent?

http://www.saga.co.uk/magazine/money/personal-finance/giving/what-you-need-to-know-about-signing-property-over-to-your-children

yes - this is whats happening

Im worried this is going to shut down my eligability for benefits and leave me with just £120...will they just count it as income? (which would be fine)

Mojisola

MEsteve wrote: »

yes - this is whats happening

If this is what she's done, then the 10 of you own her house now and are her landlords although how could that happen without you having paperwork to sign?

If you can't talk directly to her, isn't there at least one cousin you can get the facts from?